Marketable assets are the exchange of financial assets, such as stocks and bonds, for a loan between a financial institution and a borrower. To be considered marketable, assets must be able to be sold at current fair value under normal market conditions, with reasonable speed. In order for national banks to accept a borrower`s loan proposal, guarantees must be equal to 100% of the amount of the loan or credit extension. In the United States of America, the total outstanding loans and loan renewals granted by the bank to a borrower must not exceed 15 per cent of the bank`s capital and surplus, plus an additional 10 per cent of the bank`s capital and surplus.  The protection provided by collateral generally allows lenders to offer a lower interest rate on secured loans. The reduction in interest rates can be as much as several percentage points depending on the nature and value of the security. For example, the interest rate on an unsecured loan (RPA) is often much higher than for a secured loan or logbook. In loan contracts, guarantees are a borrower`s commitment to recognize certain real estate assets from a lender in order to ensure the repayment of a loan.   The security is used to protect a lender from a borrower`s default and can therefore be used to offset the loan if the borrower does not pay principal and interest satisfactorily in accordance with the terms of the loan agreement. When a borrower defaults on a loan (due to bankruptcy or other event), that borrower loses the mortgaged property as collateral, with the lender becoming the owner of the property. For example, in the case of a typical mortgage transaction, the property acquired under the loan serves as collateral.
If the buyer does not move the loan in accordance with the mortgage agreement, the lender can use the legal execution procedure to obtain ownership of the property. If a second mortgage is involved, the primary mortgage is repaid first with the remaining funds to satisfy the second mortgage.   A pawnbroker is a frequent example of a company that can accept a wide range of positions as collateral. Security, particularly in the banking sector, traditionally relates to asset-based lending. More complex insurance agreements can be used to secure business transactions (also known as capital market hedging). The former are often unilateral bonds guaranteed in the form of property, security, security or other collateral (originally called security), while the latter are often bilateral bonds with more liquid assets, such as cash or securities, often referred to as margins. The asset guarantee gives lenders sufficient collateral against the risk of default. It also helps some borrowers get loans if they have bad and bad credit instigations. Guaranteed loans generally have a much lower interest rate than unsecured loans. The depreciation of collateral is the main risk associated with guaranteeing loans with tradable assets.